DIGISPICE.NS WACC - Weighted Average Cost of Capital

The WACC of Digispice Technologies Ltd (DIGISPICE.NS) is 16.2%.

The Cost of Equity of Digispice Technologies Ltd (DIGISPICE.NS) is 16.80%.

The Cost of Debt of Digispice Technologies Ltd (DIGISPICE.NS) is 5.90%.

	Range	Selected
Cost of equity	14.40% - 19.20%	16.80%
Tax rate	19.20% - 32.90%	26.05%
Cost of debt	4.00% - 7.80%	5.90%
WACC	13.9% - 18.5%	16.2%

WACC

DIGISPICE.NS WACC calculation

Category	Low	High

Long-term bond rate	6.9%	7.4%
Equity market risk premium	8.3%	9.3%
Adjusted beta	0.91	1.22

Additional risk adjustments	0.0%	0.5%
Cost of equity	14.40%	19.20%

Tax rate	19.20%	32.90%
Debt/Equity ratio	0.05	0.05
Cost of debt	4.00%	7.80%

After-tax WACC	13.9%	18.5%


Selected WACC	16.2%

DIGISPICE.NS's CAPM model and how its cost of Equity is calculated

The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.

This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.

Here’s how we figure out the cost of equity for DIGISPICE.NS:

cost_of_equity (16.80%) = risk_free_rate (7.15%) + equity_risk_premium (8.80%) * adjusted_beta (0.91) + risk_adjustments (0.25%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.